A bill to help cut down the number of foreclosure VA and other foreclosure homes in Nevada has been introduced by Assembly Speaker Barbara Buckley in the state legislature.
The bill would require mortgage lenders to work out loan modifications during mediation meetings with borrowers if the borrowers request for mediations.
The bill would also require mortgage lenders to provide notices of default together with contact information for bank personnel authorized to work out loan restructurings, information about a recommended foreclosure counseling agency and information about the rights of distressed homeowners to request mediations for loan modifications.
Mediations would be managed by a judge, a hearing master or a judicial branch designee.
Buckley, who manages a legal aid nonprofit if she is not working in the Legislature, explained that she has been seeing foreclosures on every block that she passes by.
Chief Justice Jim Hardesty has already formed a working group to develop systems and rules for the mediation program. He said the program is a major initiative and it requires more personnel and resources.
Hardesty added that courts have been having backlogs related to cases of forclosure VA and other foreclosure homes. He said that Clark County alone will process 1,200 to 1,500 mediations every month if the program is approved.
But Hardesty also added that many lawyers across Nevada have indicated their commitment to participate in the proposed mediation program to reduce forclosure VA and other foreclosure properties in Nevada.
Last year, 77,693 Nevada properties were hit with foreclosure filings, more than twice total filings in 2007 and more than fivefold the number in 2006, according to RealtyTrac studies.
In the first quarter, Nevada has the biggest foreclosure rate among states, with one house in every 27 housing units receiving a foreclosure filing. A total of 41,296 homes have received default and foreclosure notices, with 10,442 already in foreclosure.
In RealtyTrac’s latest report, Nevada continues to have the biggest foreclosure rate among states.
According to the Center for Responsible Lending, there would be around 72,157 homes in Nevada that would be hit with foreclosure filings or would become forclosure VA or foreclosure homes in 2009.
Assembly Speaker Buckley said home values across Nevada have declined by about $6.5 billion over the 2008-2009 period and home prices are still falling, prolonging the cycle of low prices and forclosure VA and other foreclosures.
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